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DeductionsonSection80C,80CCC&80CCD
Section80C
Undersection80C,adeductionofRs1,50,000canbeclaimedfromyourtotalincome.Insimpleterms,youcanreduceuptoRs1,50,000
fromyourtotaltaxableincomethroughsection80C.ThisdeductionisallowedtoanIndividualoraHUF.
AmaximumofRs1,50,000canbeclaimedforfinancialyear201415.Thelimitforfinancialyear201516andfinancialyear201617is
alsoRs1,50,000.
Clickheretoseealltheinvestmentoptionstosave
Section80CCC:DeductionforPremiumPaidforAnnuityPlanofLICorOtherInsurer
ThissectionprovidesdeductiontoanIndividualforanyamountpaidordepositedinanyannuityplanofLICoranyotherinsurer.Theplan
mustbeforreceivingpensionfromafundreferredtoinSection10(23AAB).
Iftheannuityissurrenderedbeforethedateofitsmaturity,thesurrendervalueistaxableintheyearofreceipt.
Section80CCD:DeductionforContributiontoPensionAccount
Employee'scontributionSection80CCD(1)AllowedtoanIndividualwhomakesdepositstohis/herPensionaccount.Maximumdeduction
allowedis10%ofsalary(incaseoftaxpayerbeinganemployee)or10%ofgrosstotalincome(incaseoftaxpayerbeingselfemployed)or
Rs1,00,000whicheverisless.ThelimitofRs1,00,000hasbeenincreasedtoRs1,50,000startingfinancialyear201516(assessmentyear
201617).
DeductionforselfcontributiontoNPSsection80CCD(1B)Anewsection80CCD(1B)hasbeenintroducedforadditionaldeductionfor
amountdepositedbyataxpayertotheirNPSaccount.ContributionstoAtalPensionYojanaarealsoeligible.Deductionisallowedon
contributionuptoRs50,000.
Employer'scontributionSection80CCD(2)Deductionisallowedforemployer'scontributiontoemployeespensionaccountupto10%of
thesalaryoftheemployee.Thereisnomonetaryceilingonthisdeduction.
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DeductionsonInterestonSavingsAccount
Section80TTA:DeductionfromgrosstotalincomeforInterestonSavingsbankaccount
AdeductionofmaximumRs10,000canbeclaimedagainstinterestincomefromasavingsbankaccount.Interestfromsavingsbankaccount
shouldbefirstincludedinotherincomeanddeductioncanbeclaimedofthetotalinterestearnedorRs10,000,whicheverisless.This
deductionisallowedtoanindividualorHUF.Anditcanbeclaimedforinterestondepositsinsavingsaccountwithabank,cooperative
societyorpostoffice.Section80TTAdeductionisnotavailableoninterestincomefromfixeddepositsorrecurringdepositsorinterestincome
fromcorporatebonds.
DeductionsonHouseRent
Section80GG:DeductionforHouseRentPaidwhereHRAisnotreceived
ThisdeductionisavailableforrentpaidwhenHRAisnotreceived.Taxpayerorhisspouseorminorchildshouldnotownresidential
accommodationattheplaceofemployment.
Taxpayershouldnothaveselfoccupiedresidentialpropertyinanyotherplace.
Taxpayermustbelivingonrentandpayingrent.
Deductionavailableistheminimumof
1.Rentpaidminus10%oftotalincome
2.Rs.2000/permonth
3.25%oftotalincome
ForFinancialyear201617Forcalculatingdeductionabove,Rs2,000permonthhasbeenraisedtoRs5,000permonth.Thereforea
maximumofRs60,000perannumcanbeclaimedasadeduction.
DeductionsonEducationLoanforHigherStudies
Section80E:DeductionforInterestonEducationLoanforHigherStudies
Deductionisallowedforinterestonloantakenforpursuinghighereducation.Thisloanmayhavebeentakenforthetaxpayer,spouseor
childrenorforastudentforwhomthetaxpayerisalegalguardian.Thedeductionisavailableforamaximumof8yearsortilltheinterestis
paid,whicheverisearlier.Thereisnorestrictionontheamountthatcanbeclaimed.
DeductionforFirstTimeHomeOwners
Section80EE:DeductionsonHomeLoanInterestforFirstTimeHomeOwners
ForFinancialYear201314andFinancialYear201415
ThissectionprovideddeductionontheHomeLoanInterestpaid.ThedeductionunderthissectionisavailableonlytoIndividualsforfirst
housepurchasedwherethevalueofthehouseisRs40lakhsorlessandloantakenforthehouseisRs25lakhsorless.AndtheLoanhas
beensanctionedbetween01.04.2013to31.03.2014.TheaggregatedeductionallowedunderthissectioncannotexceedRs1,00,000andis
allowedforfinancialyears201314&201415(Assessmentyear201415and201516).
Thisdeductionisnotavailableforfinancialyear201516(assessmentyear201617).
ForFinancialYear201617
ThissectionwasrevivedinBudget2016andisapplicablestartingFY201617.Thedeductionunderthissectionisavailableonlytoan
Individualwhoisafirsttimehomeowner.ThevalueofthepropertypurchasedmustbelessthanRs50Lakhsandhomeloanmustbeless
thanRs35lakhs.AndtheLoanmustbetakenfromafinancialinstitutionandmustbesanctionedbetween01.04.2016to31.03.2017.Under
thissection,anadditionaldeductionofRs50,000canbeclaimedonhomeloaninterest.ThisisinadditiontodeductionofRs2,00,000
allowedundersection24oftheincometaxactforaselfoccupiedhouseproperty.Thereisnorestrictiononthenumberofyearsforwhichthis
deductioncanbeclaimed.
DeductionsonRajivGandhiEquitySavingScheme(RGESS)
Section80CCG:RajivGandhiEquitySavingScheme(RGESS)
TheRajivGandhiEquitySavingScheme(RGESS)waslaunchedafterthe2012Budget.InvestorswhosegrosstotalincomeislessthanRs.
12lakhscaninvestinthisscheme.Uponfulfilmentofconditionslaiddowninthesection,thedeductionislowerof,50%ofamountinvestedin
equitysharesorRs25,000.
DeductionsonMedicalInsurance
Section80D:DeductionforpremiumpaidforMedicalInsurance
Forfinancialyear201415DeductionisavailableuptoRs.15,000/toataxpayerforinsuranceofself,spouseanddependentchildren.If
individualorspouseismorethan60yearsoldthedeductionavailableisRs20,000.Anadditionaldeductionforinsuranceofparents(fatheror
motherorboth)isavailabletotheextentofRs.15,000/iflessthan60yearsoldandRs20,000ifparentsaremorethan60yearsold.
Therefore,themaximumdeductionavailableunderthissectionistotheextentofRs.40,000/.(FromAY201314,withintheexistinglimita
deductionofuptoRs.5,000forpreventivehealthcheckupisavailable).
Forfinancialyear201516DeductionisraisedfromRs15,000toRs25,000.ThedeductionforseniorcitizensisraisedfromRs20,000toRs
30,000.Foruninsuredsuperseniorcitizens(morethan80yearsold)medicalexpenditureincurreduptoRs30,000shallbeallowedasa
deductionundersection80D.However,totaldeductionforhealthinsurancepremiumandmedicalexpensesforparentsshallbelimitedtoRs
30,000.
DeductionsonMedicalExpenditureforaHandicappedRelative
Section80DD:DeductionforRehabilitationofHandicappedDependentRelative
Deductionisavailableon:
1.Expenditureincurredonmedicaltreatment,(includingnursing),trainingandrehabilitationofhandicappeddependentrelative
2.Paymentordeposittospecifiedschemeformaintenanceofdependenthandicappedrelative.
Wheredisabilityis40%ormorebutlessthan80%fixeddeductionofRs50,000.
Wherethereisseveredisability(disabilityis80%ormore)fixeddeductionofRs1,00,000.Acertificateofdisabilityisrequiredfrom
prescribedmedicalauthority.
Note:Apersonwith'severedisability'meansapersonwith80%ormoreofoneormoredisabilitiesasoutlinedinsection56(4)ofthe'Persons
withdisabilities(Equalopportunities,protectionofrightsandfullparticipation)'Act.
CertificatecanbetakenfromaSpecialistasspecified.
Patientsgettingtreatedinaprivatehospitalarenotrequiredtotakethecertificatefromagovernmenthospital.
Patientsreceivingtreatmentinagovernmenthospitalhavetotakecertificatefromanyspecialistworkingfulltimeinthathospital.Such
specialistmusthaveapostgraduatedegreeinGeneralorInternalMedicineoranyequivalentdegree,whichisrecognisedbythe
MedicalCouncilofIndia.
CertificateinForm10Iisnolongerrequired.Thecertificatemusthavenameandageofthepatient,nameofthediseaseorailment,
name,address,registrationnumberandthequalificationofthespecialistissuingtheprescription.Ifthepatientisreceivingthe
treatmentinaGovernmenthospital,itshouldalsohavenameandaddressoftheGovernmenthospital.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.
DeductionsonMedicalExpenditureonSelforDependentRelative
Section80DDB:DeductionforMedicalExpenditureonSelforDependentRelative
AdeductionRs.40,000/ortheamountactuallypaid,whicheverislessisavailableforexpenditureactuallyincurredbyresidenttaxpayeron
himselfordependentrelativeformedicaltreatmentofspecifieddiseaseorailment.
ThediseaseshavebeenspecifiedinRule11DD.Acertificateinform10IistobefurnishedbythetaxpayerfromanyRegisteredDoctor.
IncaseofseniorcitizenthedeductioncanbeclaimeduptoRs60,000oramountactuallypaid,whicheverisless.
Forfinancialyear201516forveryseniorcitizensRs80,000isthemaximumdeductionthatcanbeclaimed.
DeductionsforPersonsufferingfromPhysicalDisability
Section80U:DeductionforPersonsufferingfromPhysicalDisability
DeductionofRs.50,000/toanindividualwhosuffersfromaphysicaldisability(includingblindness)ormentalretardation.Incaseofsevere
disability,deductionofRs.100,000canbeclaimed.CertificateshouldbeobtainedfromaGovt.Doctor.TherelevantruleisRule11D.Thisisa
fixeddeductionandnotbasedonbillsorexpenses.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.
DeductionfordonationstowardsSocialCauses
Section80G:DeductionfordonationstowardsSocialCauses
ThevariousdonationsspecifiedinSec.80Gareeligiblefordeductionuptoeither100%or50%withorwithoutrestrictionasprovidedinSec.
80G.80GdeductionnotapplicableincasedonationisdoneinformofcashforamountoverRs10,000.
Donationswith100%deductionwithoutanyqualifyinglimit:
NationalDefenceFundsetupbytheCentralGovernment
PrimeMinister'sNationalReliefFund
NationalFoundationforCommunalHarmony
Anapproveduniversity/educationalinstitutionofNationaleminence
ZilaSakshartaSamiticonstitutedinanydistrictunderthechairmanshipoftheCollectorofthatdistrict
FundsetupbyaStateGovernmentforthemedicalrelieftothepoor
NationalIllnessAssistanceFund
NationalBloodTransfusionCouncilortoanyStateBloodTransfusionCouncil
NationalTrustforWelfareofPersonswithAutism,CerebralPalsy,MentalRetardationandMultipleDisabilities
NationalSportsFund
NationalCulturalFund
FundforTechnologyDevelopmentandApplication
NationalChildren'sFund
ChiefMinister'sReliefFundorLieutenantGovernor'sReliefFundwithrespecttoanyStateorUnionTerritory
TheArmyCentralWelfareFundortheIndianNavalBenevolentFundortheAirForceCentralWelfareFund,AndhraPradeshChief
Minister'sCycloneReliefFund,1996
TheMaharashtraChiefMinister'sReliefFundduringOctober1,1993andOctober6,1993
ChiefMinister'sEarthquakeReliefFund,Maharashtra
AnyfundsetupbytheStateGovernmentofGujaratexclusivelyforprovidingrelieftothevictimsofearthquakeinGujarat
Anytrust,institutionorfundtowhichSection80G(5C)appliesforprovidingrelieftothevictimsofearthquakeinGujarat(contribution
madeduringJanuary26,2001andSeptember30,2001)or
PrimeMinister'sArmeniaEarthquakeReliefFund
Africa(PublicContributionsIndia)Fund
SwachhBharatKosh(applicablefromfinancialyear201415)
CleanGangaFund(applicablefromfinancialyear201415)
NationalFundforControlofDrugAbuse(applicablefromfinancialyear201516)
Donationswith50%deductionwithoutanyqualifyinglimit.
JawaharlalNehruMemorialFund
PrimeMinister'sDroughtReliefFund
IndiraGandhiMemorialTrust
TheRajivGandhiFoundation
Donationstothefollowingareeligiblefor100%deductionsubjectto10%ofadjustedgrosstotalincome
Governmentoranyapprovedlocalauthority,institutionorassociationtobeutilisedforthepurposeofpromotingfamilyplanning
DonationbyaCompanytotheIndianOlympicAssociationortoanyothernotifiedassociationorinstitutionestablishedinIndiaforthe
developmentofinfrastructureforsportsandgamesinIndiaorthesponsorshipofsportsandgamesinIndia.
Donationstothefollowingareeligiblefor50%deductionsubjectto10%ofadjustedgrosstotalincome
AnyotherfundoranyinstitutionwhichsatisfiesconditionsmentionedinSection80G(5)
Governmentoranylocalauthoritytobeutilisedforanycharitablepurposeotherthanthepurposeofpromotingfamilyplanning
AnyauthorityconstitutedinIndiaforthepurposeofdealingwithandsatisfyingtheneedforhousingaccommodationorforthepurpose
ofplanning,developmentorimprovementofcities,towns,villagesorboth
AnycorporationreferredinSection10(26BB)forpromotinginterestofminoritycommunity
Forrepairsorrenovationofanynotifiedtemple,mosque,gurudwara,churchorotherplace.
DeductionsonContributionbyCompaniestoPoliticalParties
Section80GGB:DeductiononcontributionsgivenbycompaniestoPoliticalParties
DeductionisallowedtoanIndiancompanyforamountcontributedbyittoanypoliticalpartyoranelectoraltrust.Deductionisallowedfor
contributiondonebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.Contributionisdefinedasper
section293AoftheCompaniesAct,1956.
DeductionsonContributionbyIndividualstoPoliticalParties
Section80GGC:DeductiononcontributionsgivenbyanypersontoPoliticalParties
Deductionisallowedtoataxpayerforanyamountcontributedtoanypoliticalpartyoranelectoraltrust.Deductionisallowedforcontribution
donebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.
DeductionsonIncomebywayofRoyaltyofaPatent
Section80RRB:DeductionwithrespecttoanyIncomebywayofRoyaltyofaPatent
Deductionforanyincomebywayofroyaltyforapatentregisteredonorafter01.04.2003underthePatentsAct1970shallbeavailableupto
Rs.3lakhsortheincomereceived,whicheverisless.ThetaxpayermustbeanindividualresidentofIndiawhoisapatentee.Thetaxpayer
mustfurnishacertificateintheprescribedformdulysignedbytheprescribedauthority.
DeductionsonInvestmentinLongTermInfrastructureBonds[REMOVED]
Section80CCF:InvestmentinLongTermInfrastructureBonds
ThissectionisnolongervalidfromAY201213.
Section80DeductionTable
Section
Section
80C
Deductionon
InvestmentinPPF
Employee'sshareofPFcontribution
NSCs
LifeInsurancePremiumpayment
Children'sTuitionFee
PrincipalRepaymentofhomeloan
InvestmentinSukanyaSamridhiAccount
ULIPS
ELSS
Sumpaidtopurchasedeferredannuity
Fiveyeardepositscheme
SeniorCitizenssavingsscheme
Subscriptiontonotifiedsecurities/notifieddepositsscheme
ContributiontonotifiedPensionFundsetupbyMutualFundorUTI.
SubscriptiontoHomeLoanAccountSchemeoftheNationalHousingBank
Subscriptiontodepositschemeofapublicsectororcompanyengagedinprovidinghousingfinance
ContributiontonotifiedannuityPlanofLIC
Subscriptiontoequityshares/debenturesofanapprovedeligibleissue
SubscriptiontonotifiedbondsofNABARD
FY201516
Rs.1,50,000
80CC
ForamountdepositedinannuityplanofLICoranyotherinsurerforpensionfromafundreferredtoinSection10(23AAB).
80CCD(1)
Employee'scontributiontoNPSaccount(maximumuptoRs1,00,000forFY201415)
80CCD(2)
Employer'scontributiontoNPSaccount
Maximumupto10%
ofsalary
80CCD(1B)
AdditionalcontributiontoNPS
Rs.50,000
80TTA(1)
InterestIncomefromSavingsaccount
Maximumupto
10,000
80GG
ForrentpaidwhenHRAisnotreceivedfromemployer
Leastofrentpaid
minus10%oftotal
incomeRs.2000/per
month25%oftotal
income
80E
Interestoneducationloan
Interestpaidfora
periodof8years
80EE
Interestonhomeloanforfirsttimehomeowners
Nil
80CCG
RajivGandhiEquitySchemeforinvestmentsinEquities
Lowerof50%of
amountinvestedin
equitysharesorRs
25,000
80D
MedicalInsuranceSelf,spouse,children
MedicalInsuranceParentsmorethan60yearsoldor(fromFY201516)uninsuredparentsmorethan80yearsold
Rs.25,000
Rs.30,000
80DD
Medicaltreatmentforhandicappeddependantorpaymenttospecifiedschemeformaintenanceofhandicapped
dependant
Disabilityis40%ormorebutlessthan80%
Disabilityis80%ormore
Rs.75,000
Rs.1,25,000
80DDB
MedicalExpenditureonSelforDependentRelativefordiseasesspecifiedinRule11DD
Forlessthan60yearsold
Formorethan60yearsold
Formorethan80yearsold
80U
Selfsufferingfromdisability:
Individualsufferingfromaphysicaldisability(includingblindness)ormentalretardation.
Individualsufferingfromseveredisability
LowerofRs
40,000orthe
amount
actuallypaid
LowerofRs
60,000orthe
amount
actuallypaid
LowerofRs
80,000orthe
amount
actuallypaid
Rs.75,000
Rs.1,25,000
80GGB
Contributionbycompaniestopoliticalparties
Amountcontributed
(notallowedincash)
80GGC
Contributionbyindividualstopoliticalparties
Amountcontributed
(notallowedincash)
80RRB
DeductionsonIncomebywayofRoyaltyofaPatent
LowerofRs3,00,000
orincomereceived
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